National Grid spending $6M to help NY businesses, farms damaged by tropical storms

Syracuse, N.Y. -- With the blessing of state utility regulators, National Grid is about to launch an unusual $6 million relief effort to help businesses and municipalities in Eastern New York that were hit hard by tropical storms Irene and Lee.

The utility will implement emergency economic development programs in 13 counties to help repair damaged buildings, replace broken farm equipment or float interest-free bridge loans to businesses waiting for state and federal aid, among other projects.

National Grid ratepayers from across the state will pick up the tab. The state Public Service Commission authorized National Grid to spend up to $6 million on the emergency programs through December 2012, after which rates will be adjusted to recover the money.

No other New York utilities have proposed similar aid programs, said James Denn, speaking for the PSC. Denn said he did not recall similar programs in the past.

National Grid officials said they proposed the idea because of the extraordinary damage in affected communities.

“We saw a lot of devastation there, and we saw an opportunity to help them out,” said Patrick Stella, speaking for the utility.

The PSC approved the plan in just three days.

“In the absence of emergency funding, businesses could fail and jobs could be lost,” PSC Chairman Garry Brown wrote in a ruling issued Friday.

The $6 million in targeted assistance is on top of $9.1 million that National Grid plans to spend this year on other economic development programs throughout the state.

In the coming days, the utility will begin communicating with customers in affected counties about its emergency effort, which will include four programs: restoring central business districts; restoring municipal infrastructure; agricultural assistance; and bridge loans to farms and businesses.